Please show the formula as well, thank you.

Notes Revenues is driven by the growth rate 10% Accounting Business Driver Gross Profits is calculated as Revenues multiplied by Gross Margin 1700 OpEx is calculated as Revenues multiplied by OpEx Percent Revenues EBIT is calculated as Gross Profits minus Operating Expenses (OpEx) Interest Income is calculated as Interest Rate multiplied by Cash (as there is no Debt) Pretax Income is calculated as EBIT plus Net Interest Income (Expenses) Taxes is calculated as Pretax Profits multiplied by Tax Rate 53 The exercise is designed such that an error early in the assignment will not adversely impact later grading. 54 55 2019 2020 2021E Relationship 56 Income Statement 57 Revenues 10,000 11,000 Business 58 Growth Rate 10% Driver 59 Cost of Revenues 6,000 6,710 Accounting 60 Gross Profits Business 61 Gross Margin 0% Driver 62 Operating Expenses (OpEx) 1500 Business 63 OpEx Percent of Revenues 0% Driver 64 EBIT Accounting 65 Net Interest Income (Expense) 50 50 Business 66 Interest Rate 5% 5% 5% Driver 67 Pretax Income Accounting 68 Taxes Business 69 Tax Rate Driver 70 Net Income 71 72 Balance Sheet 73 Cash 1,000 Accounting 74 Accounts Receivable 1,500 1,600 75 Days of Sales Outstanding (DSO) 76 PP&E 15,000 Accounting 77 Accounts Payable 1,000 1,200 Business 78 Days of Payables Outstanding (DPO) Driver 79 Equity 12,500 80 81 Hints for Working on the Cash Flow Statement 82 Cash Flow Statements always aggregate (sum up) all the inflows and Outflows of Cash Flow during a period. 83 Inflows of Cash are positive numbers and Outflows of Cash are negative numbers on the Cash Flow Statement. 84 To help you, we show the Outflows in italics. 85 You should remember that Increases in Assets, actually decrease Cash so you are subtracting an increase. 86 In contrast, increases in Liabilities, Debt and Equity increase Cash so you are adding an increase. 87 Capital Expenditures (Capex) are investments of Cash and an Outflow of Cash on the Cash Flow Statement. 88 As an investment, CapEx isn't less than zero, but it is shown as a negative number because it is an Outflow. 89 Dividends are an Outflow of Cash and also shown as a negative number, but Dividends are never less than zero 90 91 Cash Flow Statement 92 Net Income Accounting 93 + Depreciation 1,500 Accounting 94 - Increase in Accounts Receivable 95 + Increase in Accounts Payable Accounting 96 - Capital Expenditures (CapEx) (800) (1,000) (1,000) Accounting 97 -Dividends Accounting 98 Payout Ratio Business 99 = Increase (Decrease) in Cash 700 Accounting 100 Cash is previous year Cash plus Increase (Decrease) in Cash Accounts Receivable is calculated as Revenues multiplied by Days of Sales Outstanding (DSO)/365 Days of Sales Outstanding (DSO) is calculated as Accounts Receivable / Revenues * 365 PP&E in a year is calculated as PP&E in the previous year plus CapEx in the current year minus Depreciation in the current year. Accounts Payable is calculated as Cost of Revenues multiplied by Days of Payables Outstanding (DPO) /365 Days of Payables Outstanding (DPO) is calculated as Accounts Payable / Cost of Revenues * 365 Equity in a year is calculated as Equity in the previous year plus Net Income minus Dividends ALERT: Because the value of the Dividends are shown as a negative on the Cash Flow Statement the value should be added to subtract Dividends The company uses 10-year straight line depreciation (10% of PP&E in the previous year) Minus the increase in Accounts Receivable (the Accounts Receivable in the current year minus that in the previous year) Increase in Accounts Payable (the Accounts Payable in the current year minus that in the previous year) Dividends is the negative of the Net Income multiplied by Payout Ratio Notes Revenues is driven by the growth rate 10% Accounting Business Driver Gross Profits is calculated as Revenues multiplied by Gross Margin 1700 OpEx is calculated as Revenues multiplied by OpEx Percent Revenues EBIT is calculated as Gross Profits minus Operating Expenses (OpEx) Interest Income is calculated as Interest Rate multiplied by Cash (as there is no Debt) Pretax Income is calculated as EBIT plus Net Interest Income (Expenses) Taxes is calculated as Pretax Profits multiplied by Tax Rate 53 The exercise is designed such that an error early in the assignment will not adversely impact later grading. 54 55 2019 2020 2021E Relationship 56 Income Statement 57 Revenues 10,000 11,000 Business 58 Growth Rate 10% Driver 59 Cost of Revenues 6,000 6,710 Accounting 60 Gross Profits Business 61 Gross Margin 0% Driver 62 Operating Expenses (OpEx) 1500 Business 63 OpEx Percent of Revenues 0% Driver 64 EBIT Accounting 65 Net Interest Income (Expense) 50 50 Business 66 Interest Rate 5% 5% 5% Driver 67 Pretax Income Accounting 68 Taxes Business 69 Tax Rate Driver 70 Net Income 71 72 Balance Sheet 73 Cash 1,000 Accounting 74 Accounts Receivable 1,500 1,600 75 Days of Sales Outstanding (DSO) 76 PP&E 15,000 Accounting 77 Accounts Payable 1,000 1,200 Business 78 Days of Payables Outstanding (DPO) Driver 79 Equity 12,500 80 81 Hints for Working on the Cash Flow Statement 82 Cash Flow Statements always aggregate (sum up) all the inflows and Outflows of Cash Flow during a period. 83 Inflows of Cash are positive numbers and Outflows of Cash are negative numbers on the Cash Flow Statement. 84 To help you, we show the Outflows in italics. 85 You should remember that Increases in Assets, actually decrease Cash so you are subtracting an increase. 86 In contrast, increases in Liabilities, Debt and Equity increase Cash so you are adding an increase. 87 Capital Expenditures (Capex) are investments of Cash and an Outflow of Cash on the Cash Flow Statement. 88 As an investment, CapEx isn't less than zero, but it is shown as a negative number because it is an Outflow. 89 Dividends are an Outflow of Cash and also shown as a negative number, but Dividends are never less than zero 90 91 Cash Flow Statement 92 Net Income Accounting 93 + Depreciation 1,500 Accounting 94 - Increase in Accounts Receivable 95 + Increase in Accounts Payable Accounting 96 - Capital Expenditures (CapEx) (800) (1,000) (1,000) Accounting 97 -Dividends Accounting 98 Payout Ratio Business 99 = Increase (Decrease) in Cash 700 Accounting 100 Cash is previous year Cash plus Increase (Decrease) in Cash Accounts Receivable is calculated as Revenues multiplied by Days of Sales Outstanding (DSO)/365 Days of Sales Outstanding (DSO) is calculated as Accounts Receivable / Revenues * 365 PP&E in a year is calculated as PP&E in the previous year plus CapEx in the current year minus Depreciation in the current year. Accounts Payable is calculated as Cost of Revenues multiplied by Days of Payables Outstanding (DPO) /365 Days of Payables Outstanding (DPO) is calculated as Accounts Payable / Cost of Revenues * 365 Equity in a year is calculated as Equity in the previous year plus Net Income minus Dividends ALERT: Because the value of the Dividends are shown as a negative on the Cash Flow Statement the value should be added to subtract Dividends The company uses 10-year straight line depreciation (10% of PP&E in the previous year) Minus the increase in Accounts Receivable (the Accounts Receivable in the current year minus that in the previous year) Increase in Accounts Payable (the Accounts Payable in the current year minus that in the previous year) Dividends is the negative of the Net Income multiplied by Payout Ratio